Think You’re Being Underpaid? This New Study Says You Probably Are

A major national study has confirmed what many young Australian workers have long suspected—wage theft and exploitation are alarmingly widespread. The Fair Day’s Work Report 2025, produced by Melbourne Law School, surveyed over 2,800 workers aged 15 to 30 and found that one in three earned just $15 an hour or less. This is well below the national minimum wage and a clear breach of Australia’s workplace laws.

But the exploitation goes far deeper than just underpayment. Over 40% of respondents said they were made to perform extra tasks outside their normal duties without being paid. More than a third were denied proper breaks. One in four reported never receiving superannuation. And a striking 34% said they were never paid at all for work performed during trial shifts or training. Some were even compensated with food or goods instead of money—an unlawful practice under the Fair Work Act, which requires that employees be paid. Even more disturbingly, 8% were forced to hand back part or all of their pay to their employer.

The study shows that young workers are often placed in roles where the rules simply aren’t followed. Many were casually employed, had no union membership, and worked in sectors like hospitality and retail—industries where breaches were most common. The report also found that small and medium-sized businesses were more likely to be involved in unlawful conduct, and that vulnerable groups such as temporary visa holders, non-native English speakers, and gender-diverse individuals were disproportionately affected.

In addition to underpayment, many young workers were forced to cover work-related costs that should never have fallen on them. Almost 30% paid for their own uniforms. One in five paid for fuel. Others paid for personal protective equipment, training, or even tools needed to do their jobs. Some were made to lease accommodation from their employer. All of these scenarios raise serious concerns under the Fair Work Act, prohibiting employers from imposing unreasonable costs on employees in connection with their work.

Despite the scale of the problem, most young workers never sought formal help. Only a third said they had ever raised a pay concern or looked for outside assistance. Many turned instead to friends or searched online, often unaware that proper support channels even existed. The Fair Work Ombudsman and Fair Work Commission were rated as helpful by those who did use them, but awareness remained low—especially among younger age groups.

The report’s authors argue that enforcement needs to be proactive, not reactive. It shouldn’t be up to young people—many of them in their first job, unsure of their rights, and afraid of losing work—to shoulder the burden of reporting unlawful behaviour. The study calls for more targeted compliance efforts in industries known for high levels of underpayment, clearer education about workplace rights, and new digital tools to help workers quickly identify when something isn’t right.

This research makes clear that the problem isn’t isolated or accidental. It is systemic. One in three young workers is being underpaid. Many more are being exploited through unpaid hours, denied entitlements, or forced to fund their own employment. The law exists to protect them. But without proper enforcement and accessible information, too many continue to fall through the cracks.